A Change of Pace: Rhode Island AG Finds Daily Fantasy Sports Legal

Whether daily fantasy sports (DFS) are legal is an issue that has been debated nationally since October 2015, when DFS industry leaders DraftKings, Inc. and FanDuel, Inc. were accused of engaging in insider trading. On February 4, 2016, Rhode Island Attorney General Peter Kilmartin released an advisory opinion concluding that DFS is likely to be found legal in a state court.

Under current law in many states, DFS wagering arguably constitutes “unlawful gambling.” Since October 2015, state attorney generals across the country have been …

February 6, 2016 Fantasy Sports

Class Actions v. DraftKings, FanDuel to be Consolidated in Massachusetts

Following the alleged October 2015 insider trading scandal involving daily fantasy sports (DFS) industry giants DraftKings, Inc. and FanDuel, Inc., a slew of consumer-based class actions were filed against the two companies.

In December 2015, DraftKings and FanDuel agreed with the plaintiffs that the cases should be consolidated in a single jurisdiction. Both companies argued before the Judicial Panel on Multidistrict Litigation that the consolidation should occur within the U.S. District Court of Massachusetts, where DraftKings is headquartered.

The Panel ultimately agreed with DraftKings and …

February 5, 2016 Fantasy Sports

Indiana Bill to Legalize Daily Fantasy Sports Passes in State Senate

A bill to expressly legalize daily fantasy sports (DFS) in Indiana was passed by the state Senate on February 3, 2016. The bill was passed with ease, and it will now move before the Indiana House of Representatives, where it must survive another voting round before becoming official law.

The Indiana bill follows an alleged September 2015 insider trading scandal between DFS industry leaders DraftKings, Inc. and FanDuel, Inc. The scandal sparked a national debate questioning the legality of online DFS betting.

Under the definitions …

February 2, 2016 Fantasy Sports

Daily Fantasy Sports Payment Processor Vantiv Entertainment Cuts Ties with Industry

Daily fantasy sports (DFS) industry giant DraftKings, Inc. has acknowledged a recent report that Vantiv Entertainment Solutions, one of the company’s payment processors, is cutting ties.

The report was made by the New York Times on January 29, 2016. Vantiv not only provides payment processing for DraftKings but also for a number of DFS companies, including FanDuel, Inc., DraftKings’ leading competitor. Vantiv plans to end its business with all DFS clients by February 29, 2016.

The processing company’s decision to cut ties with DFS is …

January 22, 2016 Fantasy Sports

Steiner v. DraftKings, FanDuel Will Remain in Federal Court

On January 21, 2016, a Florida federal district court judge in the case of Steiner v. DraftKings, & FanDuel denied the plaintiff’s request to remand the action back to state court. The action claims the defendants are operating unlawful gambling businesses under Florida state law.

The plaintiff, Nelson Steiner, originally filed the complaint in state court, under Florida’s Sixth Circuit Court. Defendants DraftKings, Inc. and FanDuel, Inc., industry leaders in online daily fantasy sports gambling, subsequently removed the case to federal court based on diversity …

January 19, 2016 Fantasy Sports

People Asked and the Texas AG Answered: Advisory Opinion Concludes Daily Fantasy Sports Illegal in Texas

On Tuesday January 19, 2016, Texas Attorney General Ken Paxton issued his advisory opinion on the legality of daily fantasy sports (DFS) under Texas law. In short, he did not apply the law to the DFS industry favorably.

Since October 2015, daily fantasy sports — namely, industry leaders DraftKings, Inc. and FanDuel, Inc. — have been threatened nationally under federal statutes, individual state laws, and consumer lawsuits. The firestorm was sparked by news of scandal. On September 27, 2015, a DraftKings employee inadvertently released company …

January 15, 2016 Fantasy Sports

Daily Fantasy Sports Industry Voices Concerns Over Mass. AG’s Regulations Proposal

On January 12, 2016, the State of Massachusetts held a public hearing on proposed regulations for daily fantasy sports gambling (DFS). The DFS industry voiced many concerns.

In November 2015, Mass. Attorney General Maura Healey proposed consumer protection regulations. Rather than banning DFS altogether, the proposed regulations would seek to ensure transparency, truthful advertising, and the protection of the young. Such regulations would prohibit Massachusetts DFS players less than 21 years of age. The proposal also seeks to place a $1,000 monthly deposit limit …

January 13, 2016 Fantasy Sports

Mass. Gaming Commission: Daily Fantasy Sports May Still be Illegal Despite Regulation Proposal

On January 11, 2016, the Massachusetts Gaming Commission released a report questioning the legality of daily fantasy sports (DFS) under state laws. The report, called the “White Paper on Daily Fantasy Sports,” was issued the day before the public hearing on Mass. Attorney General Maura Healey’s proposed regulations. In November 2015, Healey proposed consumer protection regulations for DFS rather than banning companies’ operations altogether.

In sum, the Commission argued that while regulations may protect consumers, they do not change the fact that DFS …

January 11, 2016 Fantasy Sports

DraftKings, FanDuel Granted Stay of Preliminary Injunction in New York

News first broke from ESPN’s Darren Rovell that the New York Appellate Court decided to grant DraftKings and FanDuel their motions to stay preliminary injunction pending appeal. The decision was issued Monday January 11, 2016.

DraftKings and FanDuel—industry leaders in daily fantasy sports (DFS) — have been involved in litigation with New York Attorney General Eric Scneiderman since November 2015. In October 2015, Schneiderman sent the companies cease and desist letters, claiming that the companies must terminate business operations in New York because DFS …

January 7, 2016 Fantasy Sports

Not So Fast! FanDuel Argues Plaintiffs in California Lawsuit Agreed to Arbitrate Disputes

In Delgado v. Fanduel, Inc., FanDuel argued in motion papers on Monday that the plaintiffs cannot escape the arbitration clause in the company’s user agreement. The case is a proposed false advertising class action filed in the U.S. District Court for the Central District of California in December 2015.

FanDuel, alongside its rival, DraftKings, Inc., is a leader in the booming daily fantasy sports (DFS) industry. Following an alleged insider trading scandal in late-September 2015, FanDuel and DraftKings were forced to face dozens of …